🚀 DBS Mooning (+36%): Is It Too Late? JPM Reveals the 2026 "Super-7" List!

DBS is officially in "Beast Mode." With a stunning 36% YTD gain, the bank is printing new all-time highs while the rest of the market tries to catch up. But for smart money, the question isn't "what happened?"—it's "what happens next?"

JPMorgan has just released a critical roadmap for Singapore equities in 2026. The headline? They see "significant upside." But the devil is in the details: they are aggressively rotating out of some favorites and doubling down on others.

If you are holding Singapore banks or tech, you need to see this list.

1️⃣ The DBS Phenomenon: Why JPM Isn't Selling Yet

Retail traders usually get scared at All-Time Highs (ATH). They think, "It's too expensive, I missed the boat."

JPMorgan disagrees.

By keeping DBS as a top pick despite the massive run-up, they are signaling a "Quality Compounder" thesis.

 * The Moat: In a high-rate environment (or even a "slow cut" scenario), DBS’s net interest margins (NIM) act as a cash machine.

 * The Trap: Many retail traders are selling DBS too early to rotate into laggards. JPM suggests the leader will stay the leader.

 * Trade Idea: Don’t fight the trend. As long as DBS holds above its key moving averages, this is a "hold and compound" play, not a "take profit" panic.

2️⃣ The "Alpha" Rotation: Sea Ltd & The Restructuring Plays

The most exciting part of the report isn't the banks—it's the aggressive growth pivots. JPM’s inclusion of Sea Ltd ($SE) and Keppel signals a shift in risk appetite for 2026.

 * Sea Ltd ($SE): This is the high-beta outlier. Including a volatile tech stock alongside stable REITs suggests JPM expects a growth recovery. If you only own banks, you are missing exposure to the potential "rate cut rally" that benefits tech valuations. Sea is the turbo-charger in this portfolio.

 * Keppel & Sembcorp (The Pivots): These aren't just industrial stocks anymore; they are asset management and green energy plays. The market rewards "asset-light" models with higher P/E ratios. JPM is betting on a continued re-rating here.

3️⃣ The Shock Omission: Why Dump UOB & Yangzijiang?

This is where the controversy lies. JPM placed UOB and Yangzijiang Shipbuilding on the "less-favored" list.

 * The UOB Divergence: Historically, DBS and UOB trade in tandem. A split here implies JPM sees a widening gap in execution. DBS is winning the wealth management and digital war.

 * Yangzijiang (YZJ): Shipbuilding is deeply cyclical. Being "less favored" likely means JPM believes we are nearing "Peak Cycle." If order books are full but pricing power has peaked, the stock price often rolls over before the earnings do.

 * The Lesson: "A rising tide lifts all boats" might not apply in 2026. Stock selection is becoming critical.

4️⃣ The Defensive Anchor: CICT & Singtel

To balance the risk of Sea Ltd, JPM highlights CapitaLand Integrated Commercial Trust (CICT) and Singtel.

 * CICT: This confirms that REITs are not dead; quality retail/office assets in Singapore are still the best hedge against inflation.

 * Singtel: The sleeping giant. After years of dormancy, Singtel is being flagged for its regional data center value unlocking. It’s the perfect "low downside, moderate upside" defensive play if the market gets choppy.

💡 Conclusion: The 2026 Playbook

JPMorgan’s report is a wake-up call: The "Easy Money" phase is over.

You can no longer just buy the STI ETF and hope for the best. We are entering a K-shaped market for Singapore:

 * The Winners: High-quality yield (DBS, CICT) + Structural Growth (Sea, Keppel).

 * The Laggards: Cyclicals that have peaked (YZJ) or banks losing market share (UOB).

Smart Money Move: If you are heavy on UOB, consider rotating a portion into DBS (for quality) or Sea Ltd (for growth). Don't cling to laggards just because they look "cheaper."

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